TPL Properties Limited (“TPLP”) has mandated Arif Habib Limited as Lead Manager and Arranger and AKD Securities Limited as Co-Arranger for its Initial Public Offering (“IPO”) of 55.75 million Ordinary Shares (26.8% of post-IPO Paid-up Capital) at a Floor Price of PKR 12.50/- per share. The entire issue is being offered through Book Building only and shall take place from June 22, 2016 to June 23, 2016 (9:00 am to 2:00 pm). There will be no subsequent general public offer. The registration of investors will take place from June 17, 2016 to June 22, 2016 between 9:00 am to 2:00 pm and shall also continue on June 23, 2016 from 9:00 am to 12:00 am. The total size of the IPO at the Floor Price of PKR 12.50/- per share amounts to PKR 696.87 million approx. The Prospectus and relevant set of Bidding Forms can be downloaded from http://tpl-property.com
TPL Properties Limited is the real estate arm of TPL Group. TPLP was incorporated with an aim to invest, purchase, develop, build, rent and sell real estate. The Company has successfully completed the construction of Centrepoint and the building is fully occupied. This is Company’s first real estate project, located opposite KPT Interchange on Shaheed-e-Millat Expressway, Karachi.
Centrepoint is designed exclusively as a modern office complex with the latest in-house infrastructure facilities ideal for large local and multinational corporations. The 28 storeyed building offers state of the art facilities including built in IT infrastructure, international standards of security and fire safety, 9 floors of dedicated parking, and in-house independent power generation. Additionally, Centrepoint will feature a health club, swimming pool, coffee bar and luxurious reception spaces making it an ideal rental choice for high end corporations.
The purpose of the IPO is primarily to restructure the balance sheet of TPL Properties Limited in order to reduce external debt and strengthening financial position of the Company which will enable the shareholders to fully benefit from long term capital appreciation of the Centrepoint.
The Company has long term tenancy agreements with various renowned companies including Silk Bank, Philip Morris Pakistan Limited, TRG Pakistan Limited, Gul Ahmed Textile etc. This ensures a steady stream of predictable cash flow.
Pakistan’s Real Estate sector is considered as a safe haven against inflation and rupee depreciation. The sector outlook for next 5-10 years is positive as many opportunities lie for commercial and residential real estate developers to initiate and execute profitable ventures.